Investment Broker Agreement Template for Indonesia

The Investment Broker Agreement serves as the foundational document establishing the legal and operational framework between licensed investment brokers and their clients in Indonesia. This agreement is essential for any securities company providing broking services under Indonesian jurisdiction, particularly under the supervision of the Financial Services Authority (OJK). It is required when establishing new broker-client relationships and must comply with Law No. 8 of 1995 on Capital Markets and various OJK regulations governing securities trading. The document covers crucial aspects including service scope, trading parameters, fee structures, compliance requirements, and risk disclosures. It's designed to protect both parties while ensuring regulatory compliance, transparency, and clear operational procedures for investment activities in the Indonesian capital markets.

1. Parties: Identification of the investment broker and the client, including their complete legal names, registration numbers, and addresses

2. Background: Context of the agreement, including broker's licensing status and client's intention to engage broker's services

3. Definitions: Definitions of key terms used throughout the agreement, including technical and regulatory terms

4. Scope of Services: Detailed description of investment broking services to be provided, including types of transactions and markets covered

5. Broker's Rights and Obligations: Comprehensive listing of the broker's duties, responsibilities, and rights under the agreement

6. Client's Rights and Obligations: Client's responsibilities, including providing accurate information and maintaining sufficient funds

7. Account Management: Procedures for opening, maintaining, and closing investment accounts

8. Trading Instructions: Process for receiving and executing trading instructions, including communication methods

9. Fees and Commissions: Detailed fee structure, commission rates, and payment terms

10. Risk Disclosure: Mandatory risk warnings and acknowledgments as required by OJK regulations

11. Compliance Requirements: Regulatory compliance obligations, including KYC and AML requirements

12. Representations and Warranties: Standard representations and warranties from both parties

13. Confidentiality: Provisions regarding the protection and handling of confidential information

14. Term and Termination: Duration of agreement and circumstances for termination

15. Dispute Resolution: Procedures for resolving disputes, including jurisdiction and governing law

16. General Provisions: Standard boilerplate clauses including notices, amendments, and assignment